UPDATE: J.P. Morgan Upgrades SandRidge Energy; Raises PT

According to a research report published this morning, J.P. Morgan has upgraded SandRidge Energy SD from Neutral to Overweight, and increased PT from $9.50 to $13. In the report, J.P. Morgan commented, "Based on our NAV analysis, SandRidge is one of the cheapest stocks in our coverage universe. It is one of the few companies trading around Proved Reserves NAV using NYMEX prices. What likely has been the primary overhang on the stock is investor concern that SD will increase its funding gap further. We think its three-year funding gap is manageable and that the company will focus primarily on harvesting its existing asset base. Catalysts for the stock include successfully bridging the funding gap, spending within or close to its guidance, and hitting its production targets." SandRidge Energy closed Friday at $7.54.